Synthetix announced this Tuesday, March 15, via its Twitter account, that Synthetix Perpetual Futures will launch later this week. The firm stated that anyone with an internet connection will have access to fully decentralized, composable perpetual futures with 10x leverage through an easy-to-use trading user interface on Kwenta.
“Synthetix will launch bullish perpetual futures later this week. Anyone with Internet access will be able to take advantage of Synthetix’s infrastructure to access up to 10x leverage on an ever-growing list of synthetic assets”, he said through an article published on his website.
The company explained that Kwenta is a fully decentralized, composable protocol with a user-friendly trading UI. In addition, it is the first partner to integrate the perpetrators of Synthetix. Synthetix perpetrator markets will be accessible through a dedicated Kwenta user interface.
Benefits of Perpetual Futures
According to the company, the current design of the Synth exchange does not easily provide traders with a mechanism for leveraged trading or shorting assets with leverage.
In his view, Synthetix perpetual futures will enable a much broader and more capital efficient trading experience by allowing leveraged long and short positions in a wide selection of assets.
Similarly, he commented that for SNX participants, futures will provide an additional income stream due to financing and foreign exchange rates and reduce the need to cover additional debt due to inherent self-hedging and controlled exposure through market size limits.
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“Another useful property of Synthetix perp’s markets is that support for new assets can be more easily expanded for futures than for spot assets. This is because perpetual markets do not share some of the limitations and risks of spot synths, allowing more assets to be added safely. This means that the Synthetix protocol may soon offer a wider range of perpetual futures pairs than many competitors”, he added.
Perpetual Futures Beta
The firm highlighted that the initial Futures Beta launch will feature ETH, LINK, and BTC trading. For the first few weeks, trading will have open interest limits of $20 million USD for BTC and ETH, and $2 million for LINK, to optimize futures market parameters under real-world conditions.
In addition, he highlighted that the current design of the futures market is experimental and may need to be updated in later versions. The changes to the basic contracts will require users to close positions in the old markets and migrate to the improved markets.
